What Contributes To The Homeowner’s Insurance Premium Costs?
There are a number of factors, which influence overall affordability home insurance rates. Aspects like home type, roof age, swimming pool, etc. can have impact on the premium. Here is a list of few parameters, which can affect insurance rates for homeowner’s insurance.
- Home Improvements - Home renovations and even changes in homes can impact insurance premiums. It is needless to say that home improvements raise home values but these need to be reflected in insurance policies so that you can prevent out-of-pocket expenses that are likely to be incurred post natural disaster or accident.
- Attractive Nuisances - Things like swimming pools, backyard fun, trampolines and diving boards in homes can lead to hike in home insurance premiums. Insurers perceive greater degree of risks as likelihood of accidents are high.
- How old is your house - Once homes start ageing, they are more prone to damages caused by extreme weather conditions or natural disasters. Repair and replacements costs of roofs or windows can be expensive and this may result companies charging higher premiums.
- Type of heating source - There will be a significant hike in home insurance premium if there is a wood furnace or burning stove in your house. This is because wood-burning furnace can cause fire in your home and that increases insurers’ coverage risk.
- Location of work place - If you are working or doing business at a place that is far away from your house then insurers are likely to reward you by charging lower premiums.
- Keeping home safe & secure - Installation of security systems in homes can decrease coverage risks faced by insurers as they can ensure safety of your house. As a result, premiums charged will be low.
- Pets - Certain pet dog breeds in homes like Rottweilers and Pit bulls are aggressive and so, are considered to be dangerous. So, premiums charged for homeowner’s insurance can go up.
- Previous claims history - Insurers also review homeowner’s past claims history so, if you have previously filed numerous claims, you can expect the premium to be high.